Domotex: Numbers, spirits high

For the first time in many years, optimism figured prominently at Domotex, the international flooring fair held here earlier this month. Exhibitors, driven in part by an improvement in the European economy, see signs of a lift in the flooring industry.

[Hannover, Germany] For the first time in many years, optimism figured prominently at Domotex, the international flooring fair held here earlier this month. Exhibitors, driven in part by an improvement in the European economy, see signs of a lift in the flooring industry.

That optimism was reflected in the event's record attendance numbers. According to show organizers, more than 48,500 visitors attended, a 10.6 percent increase over 2005.

The number of exhibitors also grew at a healthy pace. Total display space increased from 90,142 square meters last year to 93,000 square meters this year, while the number of exhibitors grew nearly 9.5 percent, from 1,244 to 1,362.

Domotex continues to draw an international crowd. Fair organizers reported that more than 75 percent of its exhibitors came from areas outside Germany. The international share of attendance increased to 56.5 percent, or a total of 27,400 attendees coming from abroad.

Exhibitors were very happy with the number, geographic diversity and buying energy of attendees. "The number of dealers and the spread around the world has been great,bCrLf said Rich Burkemper, vice president of Mohawk International sales. While there might have been some softness in visitors from some parts of Asia due to the approaching New Year, buyers from Eastern Europe, the Middle East, Western Europe, Africa and even South America were well represented, others said.

The mood among buyers and exhibitors alike for business in Europe was upbeat primarily because the economy in Germany is improving. "Germany is the motor of Europe,bCrLf explained Frans De Cock, chairman of Unilin, producer of the Quick-Step laminate brand and now a division of Mohawk.

As well, a downturn in the United Kingdom -- another huge market -- is expected to be at its end. "I think the worst is over,bCrLf said Henri von Dierdonk, managing director of Associated Weavers, a Belgium-based carpet producer.

That said, 2005 was a difficult year for many European manufacturers. Many exhibitors cited a slower first half. "The beginning was difficult, but the end of the year was good,bCrLf said Geert Vanden Bosche, marketing director for Balta. That end-of-year surge is responsible for the optimism here.

Carpet manufacturers were especially upbeat because a price increase went through -- something the industry has struggled with in the past. Driven by raw material increases, average prices went up 4 percent to 6 percent on nylon products, and 5 percent to 7 percent on polypropylene products, sources reported. "It didn't cover all the raw materials increases, but it did compensate us a bit,bCrLf said Wim Vermeersch, general manager, Tufting Business Unit, Beaulieu International Group.

In both the carpet and laminate categories, manufacturers say that the top-quality products in higher price points are doing well. At the same time, low-end, high-volume products are doing well, with those in the middle having the most difficult time.

The carpet industry in particular is trending toward better quality goods — a trend the U.S. has seen for the past five years, but one that is relatively new in parts of Europe.

Hard surface continues to increase its presence at the show. "We've gone from half a hall to three halls,bCrLf explained Ed Korczak, executive director and CEO of the National Wood Flooring Association, showing for the third year in a row. In 2005 Domotex added Hall 9 for the hard surface, accessories and installation products, in addition to Halls 7 and 8. The increase in Asian companies in this sector, particularly from China, was apparent. The wood sector in particular has picked up significantly, Korczak said.